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Should You Invest in NextEra Energy (NEE)?

by WorldFinance
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Matrix Asset Advisors, an asset management company, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. In Q3, the Federal Reserve increased interest rates by 0.25%, which caused a sell-off in the stock market. The S&P 500 fell 3.27% in Q3 due to higher interest rates, economic slowdown, labor strikes, and budget impasse. Compared to the S&P 500 and Russell 1000 Value Index declines, Matrix’s Large Cap Value Portfolio experienced a slightly smaller decline during the third quarter. The Dividend Income portfolio was down modestly and outperformed the S&P 500 and the Russell 1000 Value Indexes in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Baron Small Cap Fund highlighted stocks like NextEra Energy, Inc. (NYSE:NEE) in the third quarter 2023 investor letter. Headquartered in Juno Beach, Florida, NextEra Energy, Inc. (NYSE:NEE) generates, transmits, distributes, and sells electric power. On November 27, 2023, NextEra Energy, Inc. (NYSE:NEE) stock closed at $57.58 per share. One-month return of NextEra Energy, Inc. (NYSE:NEE) was -1.23%, and its shares lost 30.20% of their value over the last 52 weeks. NextEra Energy, Inc. (NYSE:NEE) has a market capitalization of $118.137 billion.

Baron Small Cap Fund made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2023 investor letter:

“During the quarter, we started a new position in NextEra Energy, Inc. (NYSE:NEE), the owner of Florida Power & Light (FPL), a regulated utility, and NextEra Energy Resources, the largest unregulated alternative power producer (wind, solar, battery) in the United States. FPL has benefitted from Florida’s population and business growth. In addition, Florida’s regulators have been business friendly and allowed the utility to raise rates, earn a good profit, and build out its infrastructure. As a result, NextEra has historically shown earnings and dividend growth above the Utility group average. On September 30, the current dividend yield was 3.3%.

NEE disclosed some business setbacks after our initial partial purchase causing the stock price to decline further. We are very comfortable that they have a best-in-class franchise, and we are slowly continuing to build our position into the stock price weakness. We are upbeat about NextEra and the utility group in general after its poor performance this year.”

A row of utility poles and power lines, showing the reach of the electric utility operations.

NextEra Energy, Inc. (NYSE:NEE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held NextEra Energy, Inc. (NYSE:NEE) at the end of third quarter which was 59 in the previous quarter.

See also  Should You Invest in Texas Instruments Incorporated (TXN)?

We discussed NextEra Energy, Inc. (NYSE:NEE) in another article and shared the list of best nuclear energy stocks to buy on November 27, 2023. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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